CENTRALE DEL LATTE D’ITALIA S.p.A.: The Board of Directors approved the results at 31 December 2019.

• Consolidated net revenue of € 175.1 million (vs. € 180.3 million in 2018)
• EBITDA of € 6.5 million (vs. € 7.7 million in 2018)
• Negative result after taxes of € 6.5 million (vs. € 0.4 million in 2018)
• Negative net financial position of € 77.2 million (vs. € -73.7 million in FY 2018)

The 2020-2022 business plan expects a return to profit in FY 2021, with a target of € 5.5 million, and a turnover of € 187 million in 2022.

Proposal to delegate the BoD to increase capital to € 30 million in 5 years to strengthen company equity and continue growth.

The Board of Directors of Centrale del Latte d’Italia – a company listed on the Star segment of Borsa Italiana from 2001 – today approved the draft consolidated financial statements at 31 December 2019, which will be submitted to the Shareholders’ Meeting on 29 April 2020.

The Group has strengthened its market position, confirming its role as the third Italian milk and dairy hub, despite the significant uncertainty in the economic and political sphere, which raised milk raw material prices to an extraordinary level throughout 2019, with a negative impact on company results.

In Piemonte – Valle d’Aosta, Tuscany, Liguria and Veneto, the Group maintains a leadership position, with market shares in the four regions of 28.8% in the fresh milk + ESL milk sector, and 14.6% in the UHT milk sector.

Exports continued to grow successfully, also through the e-commerce channel, thanks to the experience of the Tmall Chinese virtual flagship store, the largest e-commerce b-to-c platform of Alibaba Group. In total, Centrale del Latte d’Italia Group’s exports went from € 3.471 million to € 4.732 million, accounting for 2.7% of consolidated turnover.

The Group closed FY 2019 with a consolidated turnover reaching € 175.1 million, compared to € 180.3 million (down 2.9%). EBITDA equalled € 6.5 million (3.7% on the value of production), vs. € 7.7 million in 2018 (4.3% on the value of production), down 15.1% compared to FY 2018.

EBIT was negative for € 5.3 million. The consolidated net result after taxes and after recording prepaid taxes for € 551 thousand, was negative for € 6.5 million, compared to the positive net result after taxes of FY 2018 of € 398 thousand.

The Group’s net financial position at the end of FY 2019 was negative for € 72.9 million before the application of IFRS 16 and negative for € 77.2 million after the application of IFRS 16 (vs. a negative figure of € 73.7 million in FY 2018).

The Group continued to invest during 2019 in the new automated warehouse in the Parent Company factory in Turin and in the modernisation and redevelopment of some production lines. These investments are partly supported by the Supply Chain Contract and the draft Development Contract with Invitalia, and will be completed in 2021, with an expected further cost of approx. € 8 million. The investments in the Vicenza factory, funded with the Supply Chain Contract, have been completed.

The results of the Parent Company Centrale del Latte d’Italia S.p.A.

FY 2019 of the parent company Centrale del Latte d’Italia S.p.A. closed with net revenue of € 78.3 million (-1.7%) compared to the € 79.7 million in FY 2018. EBITDA equalled € 1.7 million (2.1% on the value of production), vs. € 2.6 million in 2018 (3.3% on the value of production).
EBIT was negative for € 2.1 million (-2.7% on the value of production). The net result after taxes and after recording deferred taxes for € 213 thousand, was negative for € 3.4 million, compared to the positive result of FY 2018 of € 487 thousand.
The Parent Company’s net financial position in FY 2019 was negative for € 26.3 million (after the application of IFRS 16), vs. negative position of € 20.2 million recorded at the end of 2018.

Business outlook

2020 will be the first year of implementation of the business plan approved on 10 February. The Group’s aim is to increase profitability by consolidating the Italian market and focusing on new distribution channels, the launch of innovative new products and the strengthening of exports, also towards new markets.

For 2022, the management estimates a rise in revenue to € 187 million (+1.3% CAGR), with EBITDA rising to € 17.5 million di Euro, EBITDA of 9.3% and net profit of € 5.5 million.

The Group plans to make investments totalling € 17.3 million in the three-year period, aimed at improving and automating production processes and facilities, and at implementing actions to boost the efficiency of production systems in order to further reduce their environmental impact.

Call of Shareholders’ Meeting – 29 April 2020

Furthermore, the Board of Directors called the Shareholders’ Ordinary and Extraordinary Meeting to take place in a single call on 29 April at 3.00 p.m., at the Company’s offices in Via Filadelfia 220, Turin, in order to approve the financial statements and renew the Board of Directors. Following this call, the financial calendar will be updated and published as established by law.

There was also a proposal to delegate the Board of Directors to increase capital, with or without option rights, up to a maximum of € 30 million in 5 years. The aim of the Capital Increase is to boost company equity and continue with the prospect of growth and investment in the milk and dairy sector.

Lastly, the Board today approved the annual report of the Supervisory Body, the annual report on Corporate Governance and the report on the Remuneration paid to Directors.

Pursuant to paragraph 2 of article 154-bis of the Consolidated Finance Law, the Executive in charge of drafting corporate accounts, Mr. Giuseppe Bodrero stated that the accounting information herein contained tallies with the company’s documentary evidence, ledgers and accounts.

With 4 factories and some 400 employees, Centrale del Latte d’Italia Group produces and sells more than 200 products, ranging from milk and milk products to yoghurt and plant-based drinks,
distributed in over 16,000 traditional shops and large retail chains in the pertinent areas under the brand names TappoRosso, Mukki, Tigullio and Vicenza.

Contatti:
Barabino & Partners
Roberto Stasio
r.stasio@barabino.it
Tel.: 010/272.50.48
Mobile.: 335.53.32.483
Alice Brambilla
a.brambilla@barabino.it
Tel. 02 72023535
Mobile: 328.266.81.96